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Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH) today announces that commercial production has now commenced at its LS36-1 gas field, trial production having been successfully completed. The production period under the Petroleum Contract for Block 25/34 has accordingly commenced.

The Joint Management Committee ("JMC") established by China National Offshore Oil Corporation (CNOOC), the Company and Primeline Petroleum Corp. ("PPC") for Block 25/34 has agreed that the commissioning and trial production of the LS36-1 gas field has been completed and declared the commencement of commercial production. The production period for the LS36-1 gas field is confirmed to have commenced with effect from 1st December 2014 and the production area for LS36-1 gas field is confirmed to be the same as the development area, being 84.7 sq. km. A JMC resolution was signed to that effect on December 17, 2014. In accordance with the Petroleum Contract and Supplemental Development Agreement entered into with CNOOC, the Production Period for the LS36-1 Gas Field will be for a minimum of 15 years from the commencement of commercial production and may be extended by agreement between the Parties in the event that additional gas resources are discovered by the Parties which can be conveniently tied into, transported and processed using the production Facility.

The LS36-1 gas field has been in trial production since July 2014. Gas production has been steady since early September and the average production from early November has been 763mcmpd, or 26.7mmcfpd, above the design level of 26mmcfpd in the Overall Development Programme.

About Primeline Energy Holdings Inc.

Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 36.75% interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC Limited (51% interest and acts as operator for the field development and production) and PPC (12.25% interest). Primeline also has a 75% Contractor's interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 (5,877sq km) in the East China Sea, and Shares of Primeline are listed for trading on the TSX Venture Exchange under the symbol PEH.

ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Ming Wang, Chief Executive Officer

Please visit the Company's website at www.pehi.com.should you wish to receive Company news via email, please email robin@chfir.com and specify "Primeline Energy" in the subject line.

Forward-Looking Statements

Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Primeline. Exploration for oil and gas is subject to the inherent risk that it will not result in a commercial discovery.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.